Talking about “Brexit Challenges and opportunities for potatoes”, David Swales, head of Strategic Insights at AHDB Potatoes, says that the trade with the EU is important, but potatoes are less dependent on the EU market for exports than other sectors.

Tariff-free access is critical for most sectors, but for potatoes barriers might present opportunities for import substitution, and at the same time, Brexit could provide challenges to seed and crisp exports, says the analyst in a webinar.

Swales provided the examples of 2015, when 50% of the UK seed potato exports went to Egypt, 10% to each Spain and Morocco, 7% to Netherlands, 13% to other non-EU countries and 11% to other EU countries. At the same time, 55% of the UK crisp exports went to Ireland, 9% to France, 7% to Netherlands, 4% to Germany, 13% to other non-EU countries and 12% to other EU countries.

AHDB Potatoes considers that tariff-free access is critical, while EU tariffs rates are high for many products. Swales presented a list of tariffs to give an idea of the barriers which will face UK exporters if UK exports to the EU are subject to these tariffs. The higher tariffs are recorded for the category called “other frozen processed potato products” (17.6%), while pre-cooked frozen potatoes have 14.4%, and crisped potatoes, together with other processed potato products have each 14.1%. The categories “flour, meal and powder of potatoes” and “flakes, granules and pellets of potatoes” record each 12.2%, while “fresh/chilled potatoes, excluding for new, seed and starch” reaches 11.5%. The lowest levels are recorded for seed potatoes (4.5%) and new potatoes (between 8.6% and 13.4%, Jan/ 15 May and respectively 16 May/30 June).

In his analysis, Swales has presented some opportunity to create a policy fit for purpose, mentioning crop insurances – pays out if revenue falls below 85% of historical average; GF2 (Growing Forward 2) Framework – mix of US-style insurance, saving scheme, protection from natural hazards and disaster recovery; tax concessions – deposit scheme, tax averaging, incentives from investment and no subsidy – apart from natural disaster or animal disease control.